Solved

For a Lease to Be Classified as a Capital Lease

Question 84

Multiple Choice

For a lease to be classified as a capital lease, it must:


A) have a purchase option for the lessee at a premium purchase price.
B) transfer the ownership of the asset to the lessee at the end of the lease term.
C) have a lease period greater than or equal to 50% of the asset's useful life.
D) A capital lease must meet all of the above criteria.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents